I posted an Ethereum chart on the 7th of February and I was able to accurately trade several long positions throughout the duration of the past few days using Fibonacci levels as an idea of support, resistance and entry/ exit.
I believe that COINBASE:ETHUSD will retrace and find support on one of the lower red trendlines unless we continue and break upwards through the dotted Fibonacci retracement line drawn from the top at $1848.
It's all well and good if we break to the upside and go straight to 2k but I have to consider all scenarios that are reasonable!
On the previous idea, we retraced to the .786 Fibonacci level around $1717 yesterday before returning to the upside. I think it is unlikely the exact same scenario will play out and given the stochastics in the short term have started to cool off I believe that the same should follow for the other indicators on higher timeframes before we reach our desired $2000+ Ethereum.
Retracements are healthy as I always say, they provide market liquidity which is essential for a healthy market! I think it is more than likely this time round we will break that .786 Fibonacci retracement level and if we find support on a Fibonacci level between now and my lower red trendlines it would give me more bullish sentiment.
There is also a heavy downside risk if Bitcoin dumped then Ethereum would follow so we need to be extremely cautious about how we play this. As a trader, I will sit back and wait for the best opportunity to appear; going headfirst into a position now seems overly risky for the risk to reward ratio.
Thanks for following me and interacting with my ideas, I hope the market is good for you, remember to use risk management when trading; always do your own research and never risk any of your hard-earned money on the market before educating yourself on the risk!